Key Facts
• On September 11, Toyota announced plans to request price cuts from small parts suppliers.
• The price reduction applies to procurement for the second half of fiscal year 2025 (October 2025–March 2026).
• This marks Toyota’s first price cut request in four years.
• The decision follows a stabilization of material and energy costs after a period of high expenses.
• Toyota aims to enhance competitiveness by reducing procurement costs.
• The request will be tailored to each supplier’s business conditions, environment, and the parts they handle.
• Approximately 400 direct suppliers, including those covered by subcontracting laws, are eligible.
• Acceptance of the price cut request is not mandatory for suppliers.
Summary
Toyota Motor Corporation plans to request price reductions from its small parts suppliers for the second half of fiscal year 2025, marking its first such request in four years. The move comes as material and energy costs stabilize, allowing Toyota to resume efforts to lower procurement costs and strengthen competitiveness. The price cut will be negotiated individually with suppliers based on their specific circumstances, and compliance with the request is not obligatory. Approximately 400 direct suppliers, including those governed by subcontracting laws, are expected to be involved.
